This is very enlightening. When you have 11 minutes to spare please watch this very well made and documented video. http://www.youtube.com/watch?v=GIVvvoDbCV0
This should provide some fuel!
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5 comments:
Excellent post!
What I don't get is why McCain has not gone on the offensive on this topic. Everything in the video has been well known for some time, and Barney Frank and Chris Dodd are great targets as liberals sucking on the great Fannie Lobby teat. And Obama has milked the most!
This is a Democrat problem, which is why Pelosi has been out there early saying they bear no responsibility. They are vulnerable and she knows it.
McCain needs to attack big-time as soon as the Rescue Plan has passed. Gotta be bipartisan for a few days. But he could have started a month ago.
McCain has one add out concerning this http://www.youtube.com/watch?v=r2RZ0sUcVcE&eurl=http://www.powerlineblog.com/
Just to add a little more fuel to the discussion as to which party has added and abetted this meltdown here is a video of a congressional hearing concerning Fannie and Freddie. Compare the Democrats responses to the Republicans.
http://www.youtube.com/watch?v=r2RZ0sUcVcE&eurl=http://www.powerlineblog.com/
It appears that you have to copy and past the URLS in order to see the videos.
Oops I have heard the links are not working. The McCain add is called Rein and can be found on You Tube. http://www.youtube.com/watch?v=r2RZ0sUcVcE&feature=userlonger
Hopefully this one works. The 2004 congressional debate is called Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis and is also on You Tube with this URL
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Rich said in ref Fannie and Freddie:
"This is but one component of our crisis. The fact is, Fannie + Freddie had nothing to do with the vast majority of sub-prime loans. They originated exactly zero and they bought but a small amount of sub-prime paper. Frankly, the FREE MARKET was pouring money into sub-prime paper since the rating agencies had graded CDOs as AAA even if they had a good slice of sub-prime slime. It was this alchemy more than anything - in the FREE MARKET - that put us where we are today."
Rich, I am sorry, but you are wrong on the facts. Fannie Mae and Freddie Mac held $114 billion of subprime and $71 billion in Alt-A securities as of June 30, according to the companies. That is $185B combined. As importantly as the #s, they dramatically increased their market share of submprime and Alt A securities in 2006 and 2007, which was, as everyone else in America knew, after the housing market peaked. They were the biggest buyer of Countrywide MBS.
As to your observation about credit agencies, you failed to note that the oligopoly is a product of government restriction. In other words, more government interference in the market which has proven problematic.
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